On top of your down payment, budget for six things: Property Transfer Tax, legal fees (about $2,000 to $3,000), a home inspection (about $400 to $700 or more), home insurance, an appraisal if your lender charges for it (about $400 to $600), and property tax and utility adjustments. Property Transfer Tax is usually the biggest, and first-time buyers may be exempt from some or all of it.
Your down payment isn't the only cheque you'll write when you buy a home in BC. Here are the six additional costs you need to budget for, so you don't get caught off guard on closing day.
1. Property Transfer Tax
BC's Property Transfer Tax, or PTT, is paid when you take ownership, and it's based on the purchase price:
| Portion of the price | Tax rate |
|---|---|
| First $200,000 | 1% |
| $200,000 to $2,000,000 | 2% |
| $2,000,000 to $3,000,000 | 3% |
| Over $3,000,000 (residential) | 5% |
For example, on an $800,000 home that's $2,000 on the first $200,000 plus $12,000 on the next $600,000, for a total of $14,000.
First-time buyers: under the rules introduced in 2024, eligible first-time buyers can be exempt from the tax on the first $500,000 of the price, for homes up to $835,000, with a partial exemption just above that. Newly built homes have their own exemption too. Neither is automatic, so check the current limits and your eligibility before you count on it.
2. Legal fees
Your lawyer or notary handles the transfer of title, registers your mortgage, arranges title insurance and pays other small disbursements. I usually tell clients to budget $2,000 to $3,000.
3. Home inspection
This is your peace of mind that you aren't buying a problem house. Budget roughly $400 to $700, or more for a large or older home.
4. Home insurance
This varies too much to give you one number. It depends on the type of home, its age and systems, and the coverage you choose. Get a quote before you remove your subjects, because your lender will want proof of insurance.
5. Appraisal
Some lenders cover the appraisal; others charge you for it before it's done. When you pay, it's usually around $400 to $600.
6. Property tax and utility adjustments
At completion, your lawyer balances out property taxes and any prepaid utilities between you and the seller. The amount depends on how utilities are billed and when property taxes are due for the year.
The rule of thumb
Plan for roughly 1.5 to 4% of the purchase price in closing costs, on top of your down payment. Once we have a home in mind, I'll walk through your actual numbers.
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Budget figures are typical ranges Josh shares with clients as of 2026, not quotes; get quotes from your own providers. Tax rates and exemptions are set by the Province of British Columbia and can change. General information only, not legal or tax advice.